Reborn Coffee, Inc. (REBN) AI Stock Analysis

• Market Cap: $8.43M
• Dividend Yield: N/A
• Average Volume (3M): 76.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.66
• Revenue Growth: 21.10%
• EPS Growth: -18.56%
• Country: US
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.68
• Shares Outstanding: 5,976,322
• 10 Day Avg. Volume: 54,951
• 30 Day Avg. Volume: 76,435
• PEG Ratio: 0.02
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -1.05
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: -1.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $1.50 ▲(6.38% Upside)

Reborn Coffee, Inc. is facing severe financial instability, with negative profitability and high leverage. The technical indicators suggest a bearish trend, and the recent Nasdaq delisting notice adds significant risk. The negative P/E ratio and lack of dividend yield further weaken the stock's valuation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and potential for increased market share in the specialty coffee sector.

Technology Integration

The integrated technology platform enhances operational efficiency and customer engagement, supporting long-term growth and scalability.

International Expansion

International licensing agreements provide a scalable framework for global expansion, potentially increasing revenue streams and brand recognition.

Negative Factors

Financial Instability

Ongoing financial instability and high leverage pose risks to long-term sustainability, requiring strategic adjustments to improve financial health.

Nasdaq Delisting Risk

The potential Nasdaq delisting could impact investor confidence and access to capital markets, affecting the company's future growth prospects.

Profitability Challenges

Persistent profitability challenges highlight the need for cost management improvements to achieve sustainable financial performance.

Reborn Coffee, Inc. Business Overview & Revenue Model

Company Description

Reborn Coffee, Inc. operates and franchises retail locations and kiosks that focus on serving specialty-roasted coffee in California. The company purchases, roasts, and sells coffee, tea and other beverages, and various food items. As of September 30, 2021, it operated 7 retail locations. Reborn Coffee, Inc. was founded in 2014 and is based in Brea, California.

How the Company Makes Money

Reborn Coffee generates revenue through multiple streams, including the sale of its coffee products in retail outlets, direct-to-consumer online sales, and subscriptions for regular coffee deliveries. The company also earns money through partnerships with cafes and restaurants that carry its brand, as well as through events and workshops that promote coffee education and tasting experiences. Key factors contributing to its earnings include the growing demand for premium and ethically sourced coffee, effective marketing strategies, and a loyal customer base that values sustainability.

Reborn Coffee, Inc. Financial Statement Overview

Summary

Reborn Coffee, Inc. faces significant financial challenges, with consistent losses and high leverage. While revenue is growing, profitability and cash flow generation remain problematic. The company needs to address its cost structure and leverage to improve financial stability.

Income Statement

Reborn Coffee, Inc. shows a consistent increase in revenue, with a TTM revenue growth rate of 1.49%. However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased from previous years, reflecting potential cost management issues.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio in the TTM period. This indicates a high level of leverage and potential solvency risks. The return on equity is positive in the TTM period but is driven by negative equity, which is a concern.

Cash Flow

The cash flow statement shows improvement in free cash flow growth, with a 25.96% increase in the TTM period. However, operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable, indicating challenges in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.66M	5.93M	5.51M	3.24M	2.28M	793.09K
Gross Profit	3.69M	3.72M	3.62M	2.12M	-676.98K	-435.65K
EBITDA	-10.85M	-4.20M	-4.33M	-3.31M	-3.25M	-924.55K
Net Income	-12.76M	-4.81M	-4.73M	-3.55M	-3.44M	-1.07M
Balance Sheet
Total Assets	6.20M	7.79M	9.25M	8.46M	4.76M	1.98M
Cash, Cash Equivalents and Short-Term Investments	44.05K	158.22K	164.30K	3.02M	905.05K	128.57K
Total Debt	4.35M	3.85M	7.16M	3.85M	3.39M	2.59M
Total Liabilities	9.62M	5.19M	8.41M	4.17M	3.57M	2.73M
Stockholders Equity	-3.42M	2.60M	846.41K	4.29M	1.20M	-752.40K
Cash Flow
Free Cash Flow	-5.40M	-4.56M	-5.59M	-3.98M	-2.45M	-1.00M
Operating Cash Flow	-4.93M	-3.45M	-3.18M	-3.30M	-1.95M	-884.93K
Investing Cash Flow	-334.16K	-977.22K	-2.41M	-681.53K	-498.22K	-115.84K
Financing Cash Flow	5.01M	4.42M	2.74M	6.09M	3.22M	1.13M

Reborn Coffee, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REBN, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.67, below the 50-day MA of 1.81, and below the 200-day MA of 2.62, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 35.81 is Neutral, neither overbought nor oversold. The STOCH value of 14.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REBN.

Reborn Coffee, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHSN	62 Neutral	$89.65M	3.29	-1.73%	―	21.20%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FWRG	58 Neutral	$971.02M	197.72	0.83%	―	17.27%	-76.53%
GTIM	51 Neutral	$13.19M	13.60	3.85%	―	1.84%	12.10%
BTBD	48 Neutral	$7.84M	-9.26	-11.53%	―	-4.16%	29.52%
REBN	39 Underperform	$8.43M	-0.54	―	―	21.10%	-18.56%
FAT	39 Underperform	$8.50M	-0.03	―	724.22%	-5.26%	-44.78%

Reborn Coffee, Inc. Corporate Events

Reborn Coffee Faces Nasdaq Delisting Notice

On December 2, 2025, Reborn Coffee, Inc. received a notification from Nasdaq regarding the delisting of its securities due to non-compliance with the equity rule requiring a minimum stockholders’ equity of $2,500,000. The company plans to appeal this decision to a Hearings Panel, which could delay the suspension and delisting process, although there is no assurance of a favorable outcome.

Reborn Coffee Announces Unregistered Share Issuance

Reborn Coffee, Inc. has announced the issuance of October and November Shares, which have not been registered under the Securities Act. These shares are being issued in reliance on an exemption from registration requirements provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. This move does not constitute an offer to sell or buy these securities in the United States without proper registration or applicable exemptions, and the shares will carry a legend indicating this restriction.

Reborn Coffee Holds Annual Stockholders Meeting

On November 20, 2025, Reborn Coffee, Inc. held its annual meeting of stockholders for the fiscal year ended December 31, 2025. During the meeting, stockholders elected seven directors to the company’s Board and ratified the appointment of BCRG Group as the independent registered public accounting firm for the fiscal year. The proposal to adjourn the meeting was withdrawn as all necessary approvals were obtained.